Procurement Process Essay

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The purpose of determining requirements of procurement is that in this stage of the planning we decide on the direction we want the project to take. Important decisions need to be made regarding the resourcing of tasks, using internal capabilities or to procure those resources externally. When we are resourcing we are looking for the best way to get the work ahead completed. Using internal capabilities means that we use the resources that we already have to complete the work ahead and to procure resources externally means that we search for a supplier that will complete the work ahead to a satisfactory quality and schedule for an agreed cost. Key considerations to look at would be that a general rule of thumb is that poor procurement planning …show more content…

The procurement process step by step guide gives a guideline on following each step to complete the procurement process. Following legal guidelines, the request to contract a supplier is done by filling out important documents like the statement of work document and other contractual obligation documents. The next step requires high quality solicitation documents to be completed when selecting the right supplier for the tasks ahead. The process needs to be thorough so each option is evaluated correctly ensuring that everything that needs to be communicated is completed. Once the supplier is chosen terms and conditions need to be explained. The supplier must commit to the same performance agreed on in the contract. Project managers need to have a sound knowledge of legal implications if contractual agreements are not being followed. Reasons for failure are poor communication, contract terms not being defined well enough and acceptance of contract terms not being understood. The project manager’s role in this stage is to follow each step and thoroughly examine and compare the information received from requests for procurement of suppliers and completing legal requirements by completing important documents is also a high priority for this stage to be …show more content…

Administering the contract means that we ensure that the suppliers performance meets the contractual terms agreed on. The project management team need to have a sound knowledge of all legal implications resulting from any actions they take while managing the contract. It is important that all terms and conditions are well

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